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      <FootnoteTextInd>X</FootnoteTextInd>
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      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>PART V, LINE 4:</FormAndLineReferenceDesc>
        <ExplanationTxt>FUNDS SET ASIDE BY THE BOARD OF DIRECTORS FOR STRATEGIC PURPOSES AND TO PROVIDE INVESTMENT INCOME TO SUPPORT OPERATIONS. THESE AMOUNTS MAY ONLY BE USED WITH THE APPROVAL OF THE BOARD OF DIRECTORS.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>PART X, LINE 2:</FormAndLineReferenceDesc>
        <ExplanationTxt>THE INSTITUTE ACCOUNTS FOR THE EFFECT OF ANY UNCERTAIN TAX POSITIONS BASED ON A "MORE LIKELY THAN NOT" THRESHOLD TO THE RECOGNITION OF THE TAX POSITIONS BEING SUSTAINED BASED ON THE TECHNICAL MERITS OF THE POSITION UNDER SCRUTINY BY THE APPLICABLE TAXING AUTHORITY. IF A TAX POSITION OR POSITIONS ARE DEEMED TO RESULT IN UNCERTAINTIES OF THOSE POSITIONS, THE UNRECOGNIZED TAX BENEFIT IS ESTIMATED BASED ON A "CUMULATIVE PROBABILITY ASSESSMENT" THAT AGGREGATES THE ESTIMATED TAX LIABILITY FOR ALL UNCERTAIN TAX POSITIONS. THE INSTITUTE HAS IDENTIFIED ITS TAX STATUS AS A TAX-EXEMPT ENTITY AND ITS DETERMINATION AS TO WHAT INCOME IS RELATED AND UNRELATED AS ITS ONLY SIGNIFICANT TAX POSITIONS; HOWEVER, THE INSTITUTE HAS DETERMINED THAT SUCH TAX POSITIONS DO NOT RESULT IN AN UNCERTAINTY REQUIRING RECOGNITION. THE INSTITUTE IS NOT CURRENTLY UNDER EXAMINATION BY ANY TAXING JURISDICTIONS. THE INSTITUTE'S FEDERAL AND STATE TAX RETURNS ARE GENERALLY OPEN FOR EXAMINATION FOR THREE YEARS FOLLOWING THE DATE FILED.</ExplanationTxt>
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      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>PART I, LINE 2:</FormAndLineReferenceDesc>
        <ExplanationTxt>A STAFF SCIENTIST IS ASSIGNED TO OVERSEE THE PROJECTS. THE PRINCIPAL INVESTIGATOR ON THE RESEARCH PROJECT IS REQUIRED TO FILE PERIODIC PROGRESS REPORTS WHICH ARE REVIEWED BY BOTH THE HEI SCIENTIFIC AND FINANCIAL STAFF AND PERIODS OF SUBSEQUENT FUNDING MUST BE APPROVED BY THE HEI RESEARCH COMMITTEE BASED ON THE RESULTS OF THE PROGRESS REPORTS.</ExplanationTxt>
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      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION B, LINE 11B</FormAndLineReferenceDesc>
        <ExplanationTxt>THE PROCESS FOR THE REVIEW OF THE FORM 990 IS TO REVIEW THE MAJOR ELEMENTS AND POLICIES WITH THE BOARD OF DIRECTORS AT THEIR FALL AND WINTER MEETINGS, AND THEN INCLUDE A FINAL DRAFT OF THE FORM 990 TO THE FULL BOARD OF DIRECTORS IN THE BINDER OF MATERIALS FOR THEIR REGULARLY SCHEDULED APRIL MEETING. THE DRAFT IS PREPARED BY CBIZ MHM, LLC WITH INFORMATION FROM THE AUDITED FINANCIAL STATEMENTS PREPARED BY MAYER HOFFMAN MCCANN PC. ADDITIONAL FINANCIAL AND NARRATIVE INFORMATION REQUIRED FOR THE RETURN IS PREPARED AND PROVIDED TO CBIZ MHM, LLC BY THE HEI DIRECTOR OF FINANCE &amp; ADMINISTRATION. THE DIRECTOR AND F&amp;A STAFF REVIEW THE DRAFT FORM FOR ACCURACY AND IT IS THEN REVIEWED BY THE HEI PRESIDENT AND VICE-PRESIDENT AND TREASURER BEFORE IT IS FORWARDED TO THE BOARD. THE BOARD REVIEWS THE FORM AND MAKES COMMENTS AND SUGGESTIONS FOR REVISIONS AT THEIR REGULARLY SCHEDULED APRIL MEETING. THE FINAL FORM 990 IS THEN PRODUCED AND REVIEWED BY THE DIRECTOR OF F&amp;A FOR ACCURACY. THE FINAL FORM 990 IS SENT TO THE CHAIRMAN OF AUDIT AND FINANCE COMMITTEE FOR HIS REVIEW. ONCE THE FORM HAS BEEN REVIEWED, IT IS SIGNED BY THE PRESIDENT/CEO AND SENT TO THE IRS.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION B, LINE 12C</FormAndLineReferenceDesc>
        <ExplanationTxt>THE ORGANIZATION HAS A CONFLICT OF INTEREST POLICY THAT WAS APPROVED BY THE BOARD OF DIRECTORS IN 2003. THE BOARD REVIEWED THE POLICY IN CONJUNCTION WITH THE REQUIREMENTS OF THE NEW FORM 990 AND THE POLICY WAS EXPANDED IN SCOPE TO INCLUDE MORE EMPHASIS ON FINANCIAL CONFLICTS AS WELL AS CONFLICTS IN THE AWARD OF SCIENTIFIC GRANTS AND CONTRACTS WHICH WAS THE EMPHASIS OF THE ORIGINAL POLICY. THE UPDATED POLICY WAS APPROVED BY THE HEI BOARD OF DIRECTORS IN APRIL, 2010. IT REQUIRES ALL OFFICERS, DIRECTORS, AND KEY EMPLOYEES TO FILE AN ANNUAL DISCLOSURE OF ANY INTERESTS, FINANCIAL OR SCIENTIFIC, THAT COULD POTENTIALLY BE THE SOURCE OF CONFLICTS. UNDER THE CURRENT POLICY, THE MEMBERS OF HEI'S HEALTH RESEARCH COMMITTEE AND HEALTH REVIEW COMMITTEE ARE REQUIRED TO SUBMIT ANNUAL CONFLICT OF INTEREST DISCLOSURES TO THE DIRECTOR OF SCIENCE WHO REVIEWS THEM AND RAISES ANY POTENTIAL CONCERNS WITH THE HEI PRESIDENT. THE NEW POLICY EXPANDS THE ANNUAL DISCLOSURE TO ALL DIRECTORS AND KEY EMPLOYEES. THE DIRECTOR OF SCIENCE WILL CONTINUE TO REVIEW THE STATEMENTS FOR SCIENTIFIC CONFLICTS AND THE DIRECTOR OF F&amp;A WILL REVIEW THEM FOR FINANCIAL CONFLICTS, WITH EACH REFERRING ANY CONCERNS TO THE HEI PRESIDENT TO DETERMINE IF ANY ACTION IS REQUIRED.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION B, LINE 15</FormAndLineReferenceDesc>
        <ExplanationTxt>THE SALARY OF HEI'S CEO/EXECUTIVE DIRECTOR IS SET ACCORDING TO A PROCESS THAT WAS ESTABLISHED BY THE INDEPENDENT BOARD OF DIRECTORS AND LED BY THE CHAIR OF THE BOARD COMMITTEE FOR GOVERNANCE AND COMPENSATION. THE CHAIR OF THE COMMITTEE CONDUCTS A PERFORMANCE REVIEW THAT INCLUDES INPUT FROM A SELF-EVALUATION AND INPUT FROM OTHER HEI STAFF. A SALARY SURVEY WAS CONDUCTED BY QUATT ASSOCIATES USING NOT FOR PROFIT ORGANIZATIONS SIMILAR TO HEI TO ARRIVE AT SALARY LEVELS FOR THE HEI CEO AND ALL OTHER STAFF. THE PERFORMANCE EVALUATION AND THE SALARY DATA FROM THE SURVEY ARE THE CRITERIA USED TO DETERMINE THE SALARY. THE DELIBERATIONS OF THE COMMITTEE ARE RECORDED CONTEMPORANEOUSLY AND DOCUMENTATION IS PROVIDED BY THE CHAIRMAN OF THE BOARD OF DIRECTORS TO THE HEI DIRECTOR OF FINANCE AND ADMINISTRATION. THE PROCESS TO DETERMINE SALARIES FOR OTHER OFFICERS AND KEY EMPLOYEES IS BASED ON THE SAME COMPARABILITY DATA THAT THE BOARD OF DIRECTORS USES TO DETERMINE THE SALARY OF THE CEO. THE CEO/EXECUTIVE DIRECTOR CONDUCTS PERFORMANCE EVALUATIONS FOR THE OTHER OFFICERS WHO REPORT TO HIM AND SETS THEIR SALARIES BASED ON THE PERFORMANCE EVALUATIONS AND THE COMPARABILITY DATA FOR THEIR POSITIONS. THE SALARIES FOR OTHER KEY EMPLOYEES ARE SET USING THE SAME COMPARABILITY DATA AFTER A PERFORMANCE REVIEW CONDUCTED BY THE OFFICER IN CHARGE OF THEIR DEPARTMENT, WITH INPUT FROM THEIR IMMEDIATE SUPERVISOR IF APPROPRIATE. THE SALARY COMPARABILITY DATA IS UPDATED PERIODICALLY, AND ADJUSTMENTS MADE TO ALL SALARY SCALES AS APPROPRIATE AND BASED ON MARKET CONDITIONS FOR COMPARABLE POSITIONS AND ORGANIZATIONS.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PART VI, SECTION C, LINE 19</FormAndLineReferenceDesc>
        <ExplanationTxt>THE HEI TAX RETURNS ARE AVAILABLE ON THE CANDID WEBSITE AND ALSO UPON REQUEST TO HEI FROM A LINK ON THE HEI WEBSITE. THE HEI ANNUAL REPORT SUMMARIZING THE HEI ANNUAL FINANCIAL AUDIT IS AVAILABLE ON THE HEI WEBSITE WITH NECESSARY INFORMATION AND READERS ARE INVITED TO CONTACT HEI TO REQUEST ADDITIONAL INFORMATION AND/OR THE FULL AUDITED STATEMENTS. IN ADDITION, OUR FORMS 990 (CURRENT AND PRIOR THREE YEARS) ARE AVAILABLE ON THE OFFICIAL WEBSITE OF THE ATTORNEY GENERAL OF MASSACHUSETTS AT WWW.CHARITIES.AGO.STATE.MA.US. OUR AUDITED FINANCIAL STATEMENTS ARE ALSO AVAILABLE ON THE OFFICIAL WEBSITE OF THE ATTORNEY GENERAL OF MASSACHUSETTS AT WWW.CHARITIES.AGO.STATE.MA.US. IN ADDITION, VARIOUS OTHER GOVERNING DOCUMENTS ARE ALSO AVAILABLE OFFICIAL WEBSITE OF THE SECRETARY OF STATE OF MASSACHUSETTS AT: WWW.CORP.SEC.STATE.MA.US/CORP/CORPSEARCH/CORPSEARCHINPUT.ASP</ExplanationTxt>
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